82_FR_61922 82 FR 61673 - Hazelnuts Grown in Oregon and Washington; Increased Assessment Rate

82 FR 61673 - Hazelnuts Grown in Oregon and Washington; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 249 (December 29, 2017)

Page Range61673-61675
FR Document2017-28171

This rule implements a recommendation from the Hazelnut Marketing Board (Board) to increase the assessment rate established for the 2017-2018 and subsequent marketing years from $0.005 to $0.006 per pound of hazelnuts handled under the Marketing Order (Order). The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 82 Issue 249 (Friday, December 29, 2017)
[Federal Register Volume 82, Number 249 (Friday, December 29, 2017)]
[Rules and Regulations]
[Pages 61673-61675]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28171]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 82, No. 249 / Friday, December 29, 2017 / 
Rules and Regulations

[[Page 61673]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Doc. No. AMS-SC-17-0036; SC17-982-1 FR]


Hazelnuts Grown in Oregon and Washington; Increased Assessment 
Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements a recommendation from the Hazelnut 
Marketing Board (Board) to increase the assessment rate established for 
the 2017-2018 and subsequent marketing years from $0.005 to $0.006 per 
pound of hazelnuts handled under the Marketing Order (Order). The 
assessment rate will remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Effective January 29, 2018.

FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This final rule is issued under Marketing Agreement No. 
115 and Order No. 982, both as amended (7 CFR part 982), regulating the 
handling of hazelnuts grown in Oregon and Washington. Part 982 
(hereinafter referred to as the ``Order''), is effective under the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.'' The Board locally 
administers the Order and is comprised of growers and handlers of 
hazelnuts operating within the area of production and also includes one 
public member.
    The Department of Agriculture (USDA) is issuing this final rule in 
conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled, 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the Marketing Order now in effect, Oregon and 
Washington hazelnut handlers are subject to assessments. Funds to 
administer the Order are derived from such assessments. It is intended 
that the assessment rate as issued herein will be applicable to all 
assessable hazelnuts beginning July 1, 2017, and continue until 
amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This final rule increases the assessment rate established for the 
Hazelnut Marketing Board for the 2017-2018 and subsequent marketing 
years from $0.005 to $0.006 per pound of hazelnuts handled.
    The hazelnut Marketing Order provides authority for the Board, with 
the approval of USDA, to formulate an annual budget of expenses and 
collect assessments from handlers to administer the program. The 
members and alternate members of the Board are growers and handlers of 
Oregon and Washington hazelnuts. The Board's membership also includes 
one public member and an alternate public member, neither of whom are 
involved in the production or handling of hazelnuts. The Board members 
are familiar with the program's needs and with the costs for goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    For the 2000-2001 and subsequent marketing years, the Board 
recommended, and USDA approved, an assessment rate that would continue 
in effect from marketing year to marketing year unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Board or other information available to USDA.
    The Board met on May 17, 2017, and unanimously recommended 2017-
2018 marketing year expenditures of $878,627 and an assessment rate of 
$0.006 per pound of hazelnuts handled. In comparison, last year's 
budgeted expenditures were $765,598. The assessment rate of $0.006 per 
pound is $0.001 per pound higher than the rate currently in effect.
    The major expenditures recommended by the Board for the 2017-2018 
marketing year include $210,590 for administrative expenses, $111,000 
for a crop survey, $342,037 for promotional activities, $35,000 for

[[Page 61674]]

consulting, and $180,000 for undesignated emergency/miscellaneous 
expenses. Budgeted expenses for these items in the 2016-2017 marketing 
year were $138,088, $96,000, $234,510, $35,000, and $262,000, 
respectively. The increase in administrative expenses reflects the 
addition of an administrative staff member. The budget increase for 
marketing and promotion expenditures reflects the Board's desire to 
improve domestic hazelnut's share of the edible nut market and to 
increase consumer awareness of Oregon and Washington hazelnut products.
    The assessment rate recommended by the Board was derived at an 
annual meeting of the Board where budgetary matters for the forthcoming 
marketing year were discussed. After an open discussion with growers, 
handlers, and industry personnel, the Board established a crop estimate 
for the 2017-2018 marketing year. The Board considered the crop 
estimate, the recommended 2017-2018 marketing year expenses, and the 
Board's financial reserve when it recommended the assessment rate 
increase.
    Shipments for the year are estimated to be 80,000,000 pounds, which 
should provide $480,000 in assessment income at the $0.006 per pound 
assessment rate. Income derived from handler assessments, along with 
funds from the Board's authorized reserve and other income, should be 
adequate to cover budgeted expenses. Section 982.62(a) specifies that 
the financial reserve is not to exceed approximately one marketing 
year's operational expenses. The Board expects its financial reserve to 
be $316,881 at the beginning of the 2017-2018 marketing year and 
$117,348 at the end of the year, which would be within the reserve 
limit authorized under the Order.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Board or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Board will continue to meet prior to or during each 
marketing year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Board meetings are available from the Board or USDA. Board 
meetings are open to the public and interested persons may express 
their views at these meetings. USDA will evaluate Board recommendations 
and other available information to determine whether modification of 
the assessment rate is needed. Further rulemaking will be undertaken as 
necessary. The Board's 2017-2018 marketing year budget, and those for 
subsequent marketing years, would be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this final rule on small 
entities. Accordingly, AMS has prepared this final regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    According to the Board, there are approximately 800 growers of 
hazelnuts in the production area and approximately 17 handlers subject 
to regulation under the Marketing Order. Small agricultural producers 
(growers) are defined by the Small Business Administration (SBA) as 
those having annual receipts less than $750,000, and small agricultural 
service firms (handlers) are defined as those whose annual receipts are 
less than $7,500,000 (13 CFR 121.201).
    According to the latest National Agricultural Statistic Service 
(NASS) data, 2015 grower prices averaged $1.40 per pound. With a total 
production of 62,000,000 pounds in the same year, the farm gate value 
for hazelnuts in 2015 totaled $86.8 million ($1.40 per pound multiplied 
by 62,000,000 pounds). Taking the total 2015 value of production for 
hazelnuts and dividing it by the approximate number of hazelnut growers 
provides an average return per grower of $108,500. It is estimated by 
the Board that approximately 98 percent of hazelnut growers under the 
Marketing Order have annual receipts less than $750,000. Therefore, a 
majority of hazelnut growers are considered small entities under the 
SBA standards.
    According to the Board, four of the approximately 17 hazelnut 
handlers process and ship 80 percent of the total crop. An estimation 
of handler receipts can be calculated using the same 2015 farm gate 
value of $86.8 million from NASS, described above. Multiplying $86.8 
million by 80 percent ($86.8 million x 80 percent = $69.4 million) and 
dividing by four indicates that the largest hazelnut handlers received 
an estimated $17.4 million each. Dividing the remaining 20 percent 
($17.4 million) by the remaining 13 handlers yields average annual 
receipts of $1.3 million per handler. Therefore, under SBA's definition 
of a small agricultural business, about 24 percent of handlers could be 
considered large businesses and about 76 percent could be considered 
small businesses. Thus, the majority of hazelnut handlers in Oregon and 
Washington may be classified as small entities.
    This rule increases the assessment rate established for the Board 
and collected from handlers for the 2017-2018 and subsequent marketing 
years from $0.005 to $0.006 per pound of hazelnuts handled. The Board 
unanimously recommended 2017-2018 expenditures of $878,627 and an 
assessment rate of $0.006 per pound. The assessment rate of $0.006 per 
pound is $0.001 per pound higher than the 2016-2017 rate. The quantity 
of assessable hazelnuts for the 2017-2018 marketing year is estimated 
at 80,000,000 pounds. Thus, the $0.006 per pound rate should provide 
$480,000 in assessment income. This amount, along with the Board's 
reserve funds and other income, should be adequate to cover budgeted 
expenses.
    The major expenditures recommended by the Board for the 2017-2018 
marketing year include $210,590 for administrative expenses, $111,000 
for a crop survey, $342,037 for promotional activities, $35,000 for 
consulting, and $180,000 for undesignated emergency/miscellaneous 
expenses. Budgeted expenses for these items in the 2016-2017 marketing 
year were $138,088, $96,000, $234,510, $35,000, and $262,000, 
respectively.
    The Board believes there is a need to expand its promotion and 
outreach activities to increase consumers' awareness of, and desire 
for, Oregon and Washington hazelnuts in the edible tree nut market. The 
Oregon and Washington hazelnut industry has experienced a large amount 
of growth in new orchard plantings in recent years. The supply of 
hazelnuts grown in the production area is expected to increase greatly 
as newly planted trees come into nut bearing age (approximately three 
to seven years after planting, depending on the variety of hazelnut 
tree). The increased assessment rate is necessary to fund expanded 
promotional activities intended to assist marketing of the anticipated 
increased supply of hazelnuts in the forthcoming years.
    Prior to arriving at this budget and assessment rate, the Board 
considered

[[Page 61675]]

information from various sources, such as the Board's Budget and 
Personnel Committee, representatives from private research firms, and 
input from industry personnel. Alternative expenditure levels were 
discussed by these groups, based upon the relative value of various 
activities to the hazelnut industry. Many growers at the May 17, 2017, 
meeting were in favor of even greater spending by the Board on 
promotional activities for hazelnuts, while handlers were more 
conservative.
    The Board ultimately determined that 2017-2018 marketing year 
expenditures of $878,627 were appropriate, and the recommended 
assessment rate, when combined with reserve funds and other income, 
should generate sufficient revenue to meet its budgeted expenses. 
Further, the Board will maintain a $180,000 emergency fund throughout 
the 2017-2018 marketing year in order to cover any unforeseen or 
emergency operational expenses. If the 2017-2018 emergency funds are 
not expended, the resulting operating reserve would not exceed the 
limit authorized under the Order.
    A review of historical information and preliminary information 
pertaining to the upcoming marketing year indicates that the grower 
price for the 2017-2018 marketing year could range between $0.81 and 
$1.80 per pound (NASS, 2017). Therefore, the estimated assessment 
revenue for the 2017-2018 marketing year as a percentage of total 
grower revenue could range between 0.74 and 0.33 percent, respectively.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to growers. However, these costs 
would be offset by the benefits derived by the operation of the 
Marketing Order. In addition, the Board's meeting was widely publicized 
throughout the Oregon and Washington hazelnut industry, and all 
interested persons were invited to attend the meeting and participate 
in Board deliberations on all issues. Like all Board meetings, the May 
17, 2017, meeting was a public meeting, and all entities, both large 
and small, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178, ``Vegetable 
and Specialty Crops.'' No changes in those requirements are necessary 
as a result of this action. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This final rule imposes no additional reporting or recordkeeping 
requirements on either small or large Oregon and Washington hazelnut 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on August 18, 2017 (82 FR 39369). Copies of the rule were 
mailed or sent via facsimile to all Board members and hazelnut 
handlers. Finally, the rule was made available through the internet by 
USDA and the Office of the Federal Register. A 30-day comment period 
ending September 18, 2017, was provided to allow interested persons to 
respond to the proposal.
    Two comments were received during the comment period in response to 
the proposal. Both comments were generally in support of the assessment 
rate increase and believed that the action would have a minimal impact 
on consumers. However, one commenter was concerned that the notice and 
comment process for changes in assessment rates was burdensome, and the 
other commenter expressed the opinion that the assessment rate should 
have a time limit and should not be in effect indefinitely.
    Notice and comment rulemaking is required by statute for all 
changes made to marketing order regulations, including, but not limited 
to, establishment of assessment rates. In addition, all marketing order 
regulations are in effect indefinitely unless a specific effective 
period is defined in the regulation when it is established. The Board 
chose not to establish a specific time period for the regulation and is 
aware that the regulation will be effective indefinitely until changed. 
Accordingly, no changes will be made to the rule as proposed, based on 
the comments received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant matter presented, including the 
information and recommendation submitted by the Board and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 982

    Hazelnuts, Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 982 is 
amended as follows:

PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for 7 CFR part 982 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


0
2. Section 982.340 is revised to read as follows:


Sec.  982.340  Assessment rate.

    On and after July 1, 2017, an assessment rate of $0.006 per pound 
is established for Oregon and Washington hazelnuts.

    Dated: December 26, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-28171 Filed 12-28-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                              61673

                                              Rules and Regulations                                                                                         Federal Register
                                                                                                                                                            Vol. 82, No. 249

                                                                                                                                                            Friday, December 29, 2017



                                              This section of the FEDERAL REGISTER                    900.2(j). This final rule is issued under             district in which the handler is an
                                              contains regulatory documents having general            Marketing Agreement No. 115 and                       inhabitant, or has his or her principal
                                              applicability and legal effect, most of which           Order No. 982, both as amended (7 CFR                 place of business, has jurisdiction to
                                              are keyed to and codified in the Code of                part 982), regulating the handling of                 review USDA’s ruling on the petition,
                                              Federal Regulations, which is published under           hazelnuts grown in Oregon and                         provided an action is filed not later than
                                              50 titles pursuant to 44 U.S.C. 1510.
                                                                                                      Washington. Part 982 (hereinafter                     20 days after the date of the entry of the
                                              The Code of Federal Regulations is sold by              referred to as the ‘‘Order’’), is effective           ruling.
                                              the Superintendent of Documents.                        under the Agricultural Marketing                         This final rule increases the
                                                                                                      Agreement Act of 1937, as amended (7                  assessment rate established for the
                                                                                                      U.S.C. 601–674), hereinafter referred to              Hazelnut Marketing Board for the 2017–
                                              DEPARTMENT OF AGRICULTURE                               as the ‘‘Act.’’ The Board locally                     2018 and subsequent marketing years
                                                                                                      administers the Order and is comprised                from $0.005 to $0.006 per pound of
                                              Agricultural Marketing Service                          of growers and handlers of hazelnuts                  hazelnuts handled.
                                                                                                      operating within the area of production                  The hazelnut Marketing Order
                                              7 CFR Part 982                                          and also includes one public member.                  provides authority for the Board, with
                                              [Doc. No. AMS–SC–17–0036; SC17–982–1                       The Department of Agriculture                      the approval of USDA, to formulate an
                                              FR]                                                     (USDA) is issuing this final rule in                  annual budget of expenses and collect
                                                                                                      conformance with Executive Orders                     assessments from handlers to administer
                                              Hazelnuts Grown in Oregon and                           13563 and 13175. This action falls                    the program. The members and alternate
                                              Washington; Increased Assessment                        within a category of regulatory actions               members of the Board are growers and
                                              Rate                                                    that the Office of Management and                     handlers of Oregon and Washington
                                                                                                      Budget (OMB) exempted from Executive                  hazelnuts. The Board’s membership also
                                              AGENCY: Agricultural Marketing Service,
                                                                                                      Order 12866 review. Additionally,                     includes one public member and an
                                              USDA.
                                                                                                      because this rule does not meet the                   alternate public member, neither of
                                              ACTION: Final rule.                                     definition of a significant regulatory                whom are involved in the production or
                                              SUMMARY: This rule implements a
                                                                                                      action, it does not trigger the                       handling of hazelnuts. The Board
                                              recommendation from the Hazelnut                        requirements contained in Executive                   members are familiar with the program’s
                                              Marketing Board (Board) to increase the                 Order 13771. See OMB’s Memorandum                     needs and with the costs for goods and
                                              assessment rate established for the                     titled, ‘‘Interim Guidance Implementing               services in their local area and are thus
                                              2017–2018 and subsequent marketing                      Section 2 of the Executive Order of                   in a position to formulate an appropriate
                                              years from $0.005 to $0.006 per pound                   January 30, 2017, titled ‘Reducing                    budget and assessment rate. The
                                              of hazelnuts handled under the                          Regulation and Controlling Regulatory                 assessment rate is formulated and
                                              Marketing Order (Order). The                            Costs’ ’’ (February 2, 2017).                         discussed in a public meeting. Thus, all
                                              assessment rate will remain in effect                      This rule has been reviewed under                  directly affected persons have an
                                              indefinitely unless modified,                           Executive Order 12988, Civil Justice                  opportunity to participate and provide
                                              suspended, or terminated.                               Reform. Under the Marketing Order now                 input.
                                                                                                      in effect, Oregon and Washington                         For the 2000–2001 and subsequent
                                              DATES: Effective January 29, 2018.
                                                                                                      hazelnut handlers are subject to                      marketing years, the Board
                                              FOR FURTHER INFORMATION CONTACT: Dale                   assessments. Funds to administer the                  recommended, and USDA approved, an
                                              Novotny, Marketing Specialist, or Gary                  Order are derived from such                           assessment rate that would continue in
                                              D. Olson, Regional Director, Northwest                  assessments. It is intended that the                  effect from marketing year to marketing
                                              Marketing Field Office, Marketing Order                 assessment rate as issued herein will be              year unless modified, suspended, or
                                              and Agreement Division, Specialty                       applicable to all assessable hazelnuts                terminated by USDA upon
                                              Crops Program, AMS, USDA;                               beginning July 1, 2017, and continue                  recommendation and information
                                              Telephone: (503) 326–2724, Fax: (503)                   until amended, suspended, or                          submitted by the Board or other
                                              326–7440, or Email: DaleJ.Novotny@                      terminated.                                           information available to USDA.
                                              ams.usda.gov or GaryD.Olson@                               The Act provides that administrative                  The Board met on May 17, 2017, and
                                              ams.usda.gov.                                           proceedings must be exhausted before                  unanimously recommended 2017–2018
                                                Small businesses may request                          parties may file suit in court. Under                 marketing year expenditures of
                                              information on complying with this                      section 608c(15)(A) of the Act, any                   $878,627 and an assessment rate of
                                              regulation by contacting Richard Lower,                 handler subject to an order may file                  $0.006 per pound of hazelnuts handled.
                                              Marketing Order and Agreement                           with USDA a petition stating that the                 In comparison, last year’s budgeted
                                              Division, Specialty Crops Program,                      order, any provision of the order, or any             expenditures were $765,598. The
                                              AMS, USDA, 1400 Independence                            obligation imposed in connection with                 assessment rate of $0.006 per pound is
                                              Avenue SW, STOP 0237, Washington,                       the order is not in accordance with law               $0.001 per pound higher than the rate
nshattuck on DSK9F9SC42PROD with RULES




                                              DC 20250–0237; Telephone: (202) 720–                    and request a modification of the order               currently in effect.
                                              2491, Fax: (202) 720–8938, or Email:                    or to be exempted therefrom. Such                        The major expenditures
                                              Richard.Lower@ams.usda.gov.                             handler is afforded the opportunity for               recommended by the Board for the
                                              SUPPLEMENTARY INFORMATION: This                         a hearing on the petition. After the                  2017–2018 marketing year include
                                              action, pursuant to 5 U.S.C. 553,                       hearing, USDA would rule on the                       $210,590 for administrative expenses,
                                              amends regulations issued to carry out                  petition. The Act provides that the                   $111,000 for a crop survey, $342,037 for
                                              a marketing order as defined in 7 CFR                   district court of the United States in any            promotional activities, $35,000 for


                                         VerDate Sep<11>2014   13:22 Dec 28, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\29DER1.SGM   29DER1


                                              61674            Federal Register / Vol. 82, No. 249 / Friday, December 29, 2017 / Rules and Regulations

                                              consulting, and $180,000 for                            assessment rate is needed. Further                    and dividing by four indicates that the
                                              undesignated emergency/miscellaneous                    rulemaking will be undertaken as                      largest hazelnut handlers received an
                                              expenses. Budgeted expenses for these                   necessary. The Board’s 2017–2018                      estimated $17.4 million each. Dividing
                                              items in the 2016–2017 marketing year                   marketing year budget, and those for                  the remaining 20 percent ($17.4 million)
                                              were $138,088, $96,000, $234,510,                       subsequent marketing years, would be                  by the remaining 13 handlers yields
                                              $35,000, and $262,000, respectively.                    reviewed and, as appropriate, approved                average annual receipts of $1.3 million
                                              The increase in administrative expenses                 by USDA.                                              per handler. Therefore, under SBA’s
                                              reflects the addition of an                                                                                   definition of a small agricultural
                                                                                                      Final Regulatory Flexibility Analysis
                                              administrative staff member. The budget                                                                       business, about 24 percent of handlers
                                              increase for marketing and promotion                       Pursuant to requirements set forth in              could be considered large businesses
                                              expenditures reflects the Board’s desire                the Regulatory Flexibility Act (RFA) (5               and about 76 percent could be
                                              to improve domestic hazelnut’s share of                 U.S.C. 601–612), the Agricultural                     considered small businesses. Thus, the
                                              the edible nut market and to increase                   Marketing Service (AMS) has                           majority of hazelnut handlers in Oregon
                                              consumer awareness of Oregon and                        considered the economic impact of this                and Washington may be classified as
                                              Washington hazelnut products.                           final rule on small entities. Accordingly,            small entities.
                                                 The assessment rate recommended by                   AMS has prepared this final regulatory                   This rule increases the assessment
                                              the Board was derived at an annual                      flexibility analysis.                                 rate established for the Board and
                                              meeting of the Board where budgetary                       The purpose of the RFA is to fit                   collected from handlers for the 2017–
                                              matters for the forthcoming marketing                   regulatory actions to the scale of                    2018 and subsequent marketing years
                                              year were discussed. After an open                      businesses subject to such actions in                 from $0.005 to $0.006 per pound of
                                              discussion with growers, handlers, and                  order that small businesses will not be               hazelnuts handled. The Board
                                              industry personnel, the Board                           unduly or disproportionately burdened.                unanimously recommended 2017–2018
                                              established a crop estimate for the                     Marketing orders issued pursuant to the               expenditures of $878,627 and an
                                              2017–2018 marketing year. The Board                     Act, and the rules issued thereunder, are             assessment rate of $0.006 per pound.
                                              considered the crop estimate, the                       unique in that they are brought about                 The assessment rate of $0.006 per
                                              recommended 2017–2018 marketing                         through group action of essentially                   pound is $0.001 per pound higher than
                                              year expenses, and the Board’s financial                small entities acting on their own                    the 2016–2017 rate. The quantity of
                                              reserve when it recommended the                         behalf.                                               assessable hazelnuts for the 2017–2018
                                              assessment rate increase.                                  According to the Board, there are                  marketing year is estimated at
                                                 Shipments for the year are estimated                 approximately 800 growers of hazelnuts                80,000,000 pounds. Thus, the $0.006
                                              to be 80,000,000 pounds, which should                   in the production area and                            per pound rate should provide $480,000
                                              provide $480,000 in assessment income                   approximately 17 handlers subject to                  in assessment income. This amount,
                                              at the $0.006 per pound assessment rate.                regulation under the Marketing Order.                 along with the Board’s reserve funds
                                              Income derived from handler                             Small agricultural producers (growers)                and other income, should be adequate to
                                              assessments, along with funds from the                  are defined by the Small Business                     cover budgeted expenses.
                                              Board’s authorized reserve and other                    Administration (SBA) as those having                     The major expenditures
                                              income, should be adequate to cover                     annual receipts less than $750,000, and               recommended by the Board for the
                                              budgeted expenses. Section 982.62(a)                    small agricultural service firms                      2017–2018 marketing year include
                                              specifies that the financial reserve is not             (handlers) are defined as those whose                 $210,590 for administrative expenses,
                                              to exceed approximately one marketing                   annual receipts are less than $7,500,000              $111,000 for a crop survey, $342,037 for
                                              year’s operational expenses. The Board                  (13 CFR 121.201).                                     promotional activities, $35,000 for
                                              expects its financial reserve to be                        According to the latest National                   consulting, and $180,000 for
                                              $316,881 at the beginning of the 2017–                  Agricultural Statistic Service (NASS)                 undesignated emergency/miscellaneous
                                              2018 marketing year and $117,348 at the                 data, 2015 grower prices averaged $1.40               expenses. Budgeted expenses for these
                                              end of the year, which would be within                  per pound. With a total production of                 items in the 2016–2017 marketing year
                                              the reserve limit authorized under the                  62,000,000 pounds in the same year, the               were $138,088, $96,000, $234,510,
                                              Order.                                                  farm gate value for hazelnuts in 2015                 $35,000, and $262,000, respectively.
                                                 The assessment rate established in                   totaled $86.8 million ($1.40 per pound                   The Board believes there is a need to
                                              this rule will continue in effect                       multiplied by 62,000,000 pounds).                     expand its promotion and outreach
                                              indefinitely unless modified,                           Taking the total 2015 value of                        activities to increase consumers’
                                              suspended, or terminated by USDA                        production for hazelnuts and dividing it              awareness of, and desire for, Oregon and
                                              upon recommendation and information                     by the approximate number of hazelnut                 Washington hazelnuts in the edible tree
                                              submitted by the Board or other                         growers provides an average return per                nut market. The Oregon and
                                              available information.                                  grower of $108,500. It is estimated by                Washington hazelnut industry has
                                                 Although this assessment rate will be                the Board that approximately 98 percent               experienced a large amount of growth in
                                              in effect for an indefinite period, the                 of hazelnut growers under the                         new orchard plantings in recent years.
                                              Board will continue to meet prior to or                 Marketing Order have annual receipts                  The supply of hazelnuts grown in the
                                              during each marketing year to                           less than $750,000. Therefore, a majority             production area is expected to increase
                                              recommend a budget of expenses and                      of hazelnut growers are considered                    greatly as newly planted trees come into
                                              consider recommendations for                            small entities under the SBA standards.               nut bearing age (approximately three to
                                              modification of the assessment rate. The                   According to the Board, four of the                seven years after planting, depending on
                                              dates and times of Board meetings are                   approximately 17 hazelnut handlers                    the variety of hazelnut tree). The
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                                              available from the Board or USDA.                       process and ship 80 percent of the total              increased assessment rate is necessary
                                              Board meetings are open to the public                   crop. An estimation of handler receipts               to fund expanded promotional activities
                                              and interested persons may express                      can be calculated using the same 2015                 intended to assist marketing of the
                                              their views at these meetings. USDA                     farm gate value of $86.8 million from                 anticipated increased supply of
                                              will evaluate Board recommendations                     NASS, described above. Multiplying                    hazelnuts in the forthcoming years.
                                              and other available information to                      $86.8 million by 80 percent ($86.8                       Prior to arriving at this budget and
                                              determine whether modification of the                   million × 80 percent = $69.4 million)                 assessment rate, the Board considered


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                                                               Federal Register / Vol. 82, No. 249 / Friday, December 29, 2017 / Rules and Regulations                                             61675

                                              information from various sources, such                  they would be submitted to OMB for                    Any questions about the compliance
                                              as the Board’s Budget and Personnel                     approval.                                             guide should be sent to Richard Lower
                                              Committee, representatives from private                    This final rule imposes no additional              at the previously mentioned address in
                                              research firms, and input from industry                 reporting or recordkeeping requirements               the FOR FURTHER INFORMATION CONTACT
                                              personnel. Alternative expenditure                      on either small or large Oregon and                   section.
                                              levels were discussed by these groups,                  Washington hazelnut handlers. As with                    After consideration of all relevant
                                              based upon the relative value of various                all Federal marketing order programs,                 matter presented, including the
                                              activities to the hazelnut industry. Many               reports and forms are periodically                    information and recommendation
                                              growers at the May 17, 2017, meeting                    reviewed to reduce information                        submitted by the Board and other
                                              were in favor of even greater spending                  requirements and duplication by                       available information, it is hereby found
                                              by the Board on promotional activities                  industry and public sector agencies. As               that this rule, as hereinafter set forth,
                                              for hazelnuts, while handlers were more                 noted in the initial regulatory flexibility           will tend to effectuate the declared
                                              conservative.                                           analysis, USDA has not identified any                 policy of the Act.
                                                 The Board ultimately determined that                 relevant Federal rules that duplicate,
                                              2017–2018 marketing year expenditures                   overlap, or conflict with this final rule.            List of Subjects in 7 CFR Part 982
                                              of $878,627 were appropriate, and the                      AMS is committed to complying with                   Hazelnuts, Marketing agreements,
                                              recommended assessment rate, when                       the E-Government Act, to promote the                  Nuts, Reporting and recordkeeping
                                              combined with reserve funds and other                   use of the internet and other                         requirements.
                                              income, should generate sufficient                      information technologies to provide                     For the reasons set forth in the
                                              revenue to meet its budgeted expenses.                  increased opportunities for citizen                   preamble, 7 CFR part 982 is amended as
                                              Further, the Board will maintain a                      access to Government information and                  follows:
                                              $180,000 emergency fund throughout                      services, and for other purposes.
                                              the 2017–2018 marketing year in order                      A proposed rule concerning this                    PART 982—HAZELNUTS GROWN IN
                                              to cover any unforeseen or emergency                    action was published in the Federal                   OREGON AND WASHINGTON
                                              operational expenses. If the 2017–2018                  Register on August 18, 2017 (82 FR
                                              emergency funds are not expended, the                   39369). Copies of the rule were mailed                ■ 1. The authority citation for 7 CFR
                                              resulting operating reserve would not                   or sent via facsimile to all Board                    part 982 continues to read as follows:
                                              exceed the limit authorized under the                   members and hazelnut handlers.
                                                                                                                                                                Authority: 7 U.S.C. 601–674.
                                              Order.                                                  Finally, the rule was made available
                                                 A review of historical information and               through the internet by USDA and the                  ■ 2. Section 982.340 is revised to read
                                              preliminary information pertaining to                   Office of the Federal Register. A 30-day              as follows:
                                              the upcoming marketing year indicates                   comment period ending September 18,
                                              that the grower price for the 2017–2018                 2017, was provided to allow interested                § 982.340    Assessment rate.
                                              marketing year could range between                      persons to respond to the proposal.                     On and after July 1, 2017, an
                                              $0.81 and $1.80 per pound (NASS,                           Two comments were received during                  assessment rate of $0.006 per pound is
                                              2017). Therefore, the estimated                         the comment period in response to the                 established for Oregon and Washington
                                              assessment revenue for the 2017–2018                    proposal. Both comments were                          hazelnuts.
                                              marketing year as a percentage of total                 generally in support of the assessment                  Dated: December 26, 2017.
                                              grower revenue could range between                      rate increase and believed that the                   Bruce Summers,
                                              0.74 and 0.33 percent, respectively.                    action would have a minimal impact on
                                                                                                                                                            Acting Administrator, Agricultural Marketing
                                                 This action increases the assessment                 consumers. However, one commenter                     Service.
                                              obligation imposed on handlers. While                   was concerned that the notice and
                                                                                                                                                            [FR Doc. 2017–28171 Filed 12–28–17; 8:45 am]
                                              assessments impose some additional                      comment process for changes in
                                                                                                                                                            BILLING CODE 3410–02–P
                                              costs on handlers, the costs are minimal                assessment rates was burdensome, and
                                              and uniform on all handlers. Some of                    the other commenter expressed the
                                              the additional costs may be passed on                   opinion that the assessment rate should
                                              to growers. However, these costs would                  have a time limit and should not be in                DEPARTMENT OF TRANSPORTATION
                                              be offset by the benefits derived by the                effect indefinitely.
                                              operation of the Marketing Order. In                       Notice and comment rulemaking is                   Federal Aviation Administration
                                              addition, the Board’s meeting was                       required by statute for all changes made
                                              widely publicized throughout the                        to marketing order regulations,                       14 CFR Part 39
                                              Oregon and Washington hazelnut                          including, but not limited to,                        [Docket No. FAA–2017–1179; Product
                                              industry, and all interested persons                    establishment of assessment rates. In                 Identifier 2017–NM–177–AD; Amendment
                                              were invited to attend the meeting and                  addition, all marketing order regulations             39–19141; AD 2017–26–10]
                                              participate in Board deliberations on all               are in effect indefinitely unless a
                                                                                                                                                            RIN 2120–AA64
                                              issues. Like all Board meetings, the May                specific effective period is defined in
                                              17, 2017, meeting was a public meeting,                 the regulation when it is established.                Airworthiness Directives; The Boeing
                                              and all entities, both large and small,                 The Board chose not to establish a                    Company Airplanes
                                              were able to express views on this issue.               specific time period for the regulation
                                                 In accordance with the Paperwork                     and is aware that the regulation will be              AGENCY: Federal Aviation
                                              Reduction Act of 1995 (44 U.S.C.                        effective indefinitely until changed.                 Administration (FAA), DOT.
                                              Chapter 35), the Order’s information                    Accordingly, no changes will be made                  ACTION: Final rule; request for
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                                              collection requirements have been                       to the rule as proposed, based on the                 comments.
                                              previously approved by OMB and                          comments received.
                                              assigned OMB No. 0581–0178,                                A small business guide on complying                SUMMARY: We are superseding
                                              ‘‘Vegetable and Specialty Crops.’’ No                   with fruit, vegetable, and specialty crop             Airworthiness Directive (AD) 2015–08–
                                              changes in those requirements are                       marketing agreements and orders may                   01, which applied to certain The Boeing
                                              necessary as a result of this action.                   be viewed at: http://www.ams.usda.gov/                Company Model 757 airplanes. AD
                                              Should any changes become necessary,                    rules-regulations/moa/small-businesses.               2015–08–01 required, depending on


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Document Created: 2018-01-03 13:16:51
Document Modified: 2018-01-03 13:16:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective January 29, 2018.
ContactDale Novotny, Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation82 FR 61673 
CFR AssociatedHazelnuts; Marketing Agreements; Nuts and Reporting and Recordkeeping Requirements

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